Banca Monte dei Paschi di Siena SPA (BMPS) AI Stock Analysis

• Market Cap: €21.60B
• Dividend Yield: 12.33%
• Average Volume (3M): 36.57M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.67
• Revenue Growth: -5.31%
• EPS Growth: -35.03%
• Country: IT
• Employees: 16,678
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 3,038,418,200
• 10 Day Avg. Volume: 26,145,064
• 30 Day Avg. Volume: 36,569,077
• PEG Ratio: -0.90
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 5.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €8.43
• Price Target Upside: 20.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: €8.00 ▲(14.61% Upside)

The overall stock score of 66 reflects a strong valuation with a low P/E ratio and high dividend yield, offset by bearish technical indicators and challenges in profitability consistency. The financial performance is solid, but the stock's current technical weakness and profitability concerns weigh on the score.

Banca Monte dei Paschi di Siena SPA Business Overview & Revenue Model

Company Description

Banca Monte dei Paschi di Siena S.p.A. provides retail and commercial banking services primarily in Italy. The company operates through Retail Banking, Corporate Banking, and Wealth Management segments. It offers funding and lending services, insurance products, financial advisory, and electronic payment services; financial and non-financial services; wealth management and financial planning services; consultancy services, such as tax planning, real estate, art, and legal advisory; fiduciary and trust services; and digital banking services. The company also provides leasing and factoring services for businesses, artisans, and professionals; and medium-and long-term credit facilities, corporate finance, capital markets, and structured finance services. In addition, it offers investment banking products and services; foreign banking services; and custody and deposit services for dairy products on behalf of third parties. Further, the company develops and manages ICT and telecommunication systems. As of December 31, 2021, it operated a network of 1,368 branches, 126 specialized centers, and 2,621 ATM machines in Italy; 1 operational branch in Shanghai; and 8 representative offices in the areas of Europe, North Africa, India, and China. The company was founded in 1472 and is headquartered in Siena, Italy.

How the Company Makes Money

BMPS generates revenue through various channels, primarily by earning interest on loans and mortgages extended to customers. The bank's core revenue streams include interest income from its lending activities, which typically constitutes the largest portion of its total revenue. Additionally, BMPS earns fees and commissions from the provision of financial services, such as account maintenance, transaction fees, and advisory services. The bank also generates income from its asset management division through management fees on investment products and mutual funds. Partnerships with other financial institutions and companies enhance its service offerings and expand its customer base, contributing to revenue growth. Furthermore, BMPS may also benefit from investment income through its securities portfolio. Overall, the combination of interest income, service fees, and investment returns underpins the bank's financial performance.

Banca Monte dei Paschi di Siena SPA Financial Statement Overview

Summary

Banca Monte dei Paschi di Siena SPA exhibits strong revenue growth and positive cash flow trends, highlighting a solid financial foundation. However, volatility in net income and a low equity ratio pose risks to profitability consistency and balance sheet stability.

Income Statement

Banca Monte dei Paschi di Siena SPA has demonstrated strong revenue growth, particularly from 2023 to 2024, with a significant increase from the previous year. The gross profit margin remains robust, indicating effective cost management. However, net income has been volatile, and there was a notable decrease in net profit from 2023 to 2024, highlighting profitability concerns despite revenue growth.

Balance Sheet

The company has a moderate debt-to-equity ratio, suggesting manageable leverage levels. The return on equity has improved significantly over the years, reflecting enhanced profitability and efficient use of equity. Despite these positives, the equity ratio indicates a relatively low proportion of equity in the asset base, which could pose risks during financial downturns.

Cash Flow

The cash flow position is strong, with consistent positive free cash flow over recent years. The operating cash flow has shown resilience, even when net income was negative, suggesting solid operational efficiency. However, the free cash flow growth rate has fluctuated, indicating potential volatility in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.45B	3.57B	3.79B	3.29B	3.18B	3.17B
Gross Profit	4.03B	3.57B	3.79B	3.29B	3.18B	3.17B
EBITDA	1.77B	1.66B	1.80B	0.00	0.00	-7.01M
Net Income	1.68B	1.95B	2.05B	-204.85M	309.51M	-1.69B
Balance Sheet
Total Assets	125.57B	122.60B	122.70B	120.17B	137.87B	150.36B
Cash, Cash Equivalents and Short-Term Investments	11.79B	26.06B	15.58B	13.60B	23.05B	29.83B
Total Debt	10.16B	12.53B	10.08B	10.30B	12.74B	16.54B
Total Liabilities	114.10B	110.95B	112.73B	112.37B	131.69B	144.57B
Stockholders Equity	11.47B	11.65B	9.98B	7.80B	6.17B	5.78B
Cash Flow
Free Cash Flow	-380.50M	1.50B	1.66B	8.32B	-662.86M	-209.91M
Operating Cash Flow	-373.10M	1.53B	1.77B	8.38B	-551.54M	-64.47M
Investing Cash Flow	-1.00M	39.15M	7.08M	44.09M	-69.07M	-6.53M
Financing Cash Flow	-1.08B	-315.03M	-2.73M	2.37B	42.93M	-331.00K

Banca Monte dei Paschi di Siena SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BMPS, the sentiment is Negative. The current price of 6.98 is below the 20-day moving average (MA) of 7.48, below the 50-day MA of 7.79, and above the 200-day MA of 6.90, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 30.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:BMPS.

Banca Monte dei Paschi di Siena SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	80 Outperform	€18.40B	8.42	14.64%	6.49%	-0.56%	2.54%
FBK	72 Outperform	€11.64B	17.90	32.83%	3.97%	2.97%	4.64%
BAMI	71 Outperform	€18.45B	7.69	16.45%	8.33%	2.23%	72.08%
MB	70 Outperform	€12.80B	9.93	11.90%	7.02%	-19.78%	7.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMPS	66 Neutral	€21.60B	5.32	15.13%	12.33%	-5.31%	-35.03%
BMED	63 Neutral	$12.43B	10.84	28.26%	5.77%	12.46%	26.82%